insurance

African Risk Capacity Limited (ARC Ltd.) has entered into a partnership with insurtech Floodbase that will see the pair working to develop, distribute, and scale parametric flood insurance products for Africa.

The Government of Mexico’s catastrophe bond is facing its most severe threat of the current Pacific tropical cyclone season, as hurricane Otis has rapidly intensified to a category 5 storm and its central pressure has deepened sufficiently to trigger the $125 million IBRD / FONDEN 2020 tranche of notes that are exposed.

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has made two payouts for Caribbean countries parametric excess rainfall insurance policies, after tropical storm Philippe in early October.

Reinsurer Hannover Re believes that there could be a “meteoric”  increase in demand for reinsurance, with over €10 billion of incremental demand possible if compulsory natural peril insurance was implemented in Germany.

In a further sign of frequency hitting insurers at a time when they are generally retaining more risk, Italian insurance giant Generali has already exceeded its 2023 annual budget for catastrophe losses by the end of the third-quarter.

Across the first nine months of 2023 analysis from insurance and reinsurance broker Aon suggests there have already been 32 billion dollar insured catastrophe loss events, setting a new record, while severe convective storms (SCS) had driven over $60 billion of insured losses by end of September.

US primary insurance giant Travelers will continue to evaluate its reinsurance arrangements, dependent on market conditions. But, in the face of elevated catastrophe weather losses, the company is likely to retain more than its peers, as “we like our underwriting”, CFO Dan Frey said.

While reinsurance and insurance-linked securities (ILS) continues to see a rotation out of certain investors, given macro factors and concerns over volatility, at the same time there is a new crop of investors rotating in that may better understand the fundamentals of the space.

Natural catastrophe losses covered by public and private insurance or reinsurance have already reached US $93 billion by the end of September, putting 2023 on-track to be another year with over US $100 billion of insured catastrophe losses, Gallagher Re has said.

US primary insurer Travelers has revealed another quarter of elevated catastrophe losses, as the impacts of severe convective storms, wind and hail took its nine month catastrophe losses to almost $2.9 billion by the end of September.